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ECONOMY

Udayapur Cement produces Rs 550 million worth of  cement in a week despite power disruptions

Udayapur Cement has decided to retain the older pricing of Rs 750 per sack for its Gaida brand cement, although private producers are selling their products for over Rs 800 per sack. The decision to maintain the old rate stems from the company's recent production hiatus and the intent to regain market traction.
By Maheshwor Chamling Rai

UDAYAPUR, May 8: Udayapur Cement Industry Limited, located in Jaljale, has produced over Rs 550 million worth of cement in just one week following the resumption of operations. Despite facing repeated power outages and operational hurdles, the government-owned enterprise managed to manufacture 3,600 metric tons of clinker, which can yield around 70,200 sacks of cement.


The industry, which had remained closed for nearly six months, resumed its kiln firing on April 24 (Baisakh 12) after necessary repairs and maintenance. However, the plant experienced daily power cuts lasting up to six hours, forcing the team to restart the kiln multiple times, said Acting General Manager Mahesh Sah. “If the electricity remains cut off for over 30 minutes, the machinery halts and requires complete refiring,” he said.


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Although the kiln firing was initiated almost two weeks ago, the plant couldn’t operate for four out of those 12 days due to the power disruptions. Still, within the seven to eight functional days, the plant produced a significant volume of clinker, according to Sah. He noted that, based on current market prices, the value of cement that can be produced from this clinker stands at approximately Rs 550 million.


Udayapur Cement has decided to retain the older pricing of Rs 750 per sack for its Gaida brand cement, although private producers are selling their products for over Rs 800 per sack. The decision to maintain the old rate stems from the company's recent production hiatus and the intent to regain market traction. Despite being a government enterprise, Gaida Cement has consistently been regarded as more durable and higher in quality compared to private brands.


The clinker is ready, but cement sales are yet to begin. The company plans to start sales in bulk once the production line becomes more stable. While the plant has a full capacity of producing 800 metric tons per day, aging machinery, maintenance issues, and power supply interruptions have lowered output. On the first day, only 250 metric tons were produced, with the fourth day reaching 400 metric tons. Since then, the factory has maintained an average daily output of 350 metric tons.


The company had stockpiled coal and diesel to last for 12 days at full capacity. However, since the factory is running at half capacity due to the irregular power supply, Sah estimates the fuel reserves may now last up to five additional days. Cement sales will begin once sufficient stock is ready for the market.


 


 

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